Are These Top Penny Stocks on Your Watchlist in 2021?
Despite an overall disappointing day so far for penny stocks and blue chips, several big winners have prevailed. This is common as penny stocks don’t like to play by larger market rules, and therefore, can see major gains despite what the broader stock market is doing. On November 24th, we are witnessing a sizable amount of volatility in the market. One major positive to consider is that jobless claims reached a one-year low, hitting their lowest levels since November of 1969.
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And while this is a positive for those seeking jobs, it also shows that the labor market is slightly constricted right now. In addition, the 10-year Treasury yield rose to around 1.7%, which shows both economic recovery and high inflation. All of this is consistent with what investors expected and is leading to this most recent market selloff. So, with all of that in mind, let’s take a look at three penny stocks that could be worth watching right now.
3 Top Penny Stocks to Watch in November 2021
Biofrontera Inc. (NASDAQ: BFRI)
One of the biggest gainers of the day is BFRI stock, which climbed by over 150% during trading today. While it technically isn’t a penny stock at over $6.50, it was when the day began. The main reason for this gain comes as news was announced that Roth Capital initiated a buy rating on the company with a price target of $20.
While analyst ratings are always exciting, they can often lead to speculative gains like the one we witnessed today. However, they are worth keeping in mind and should be considered when investing. For some context, Biofrontera is a biopharmaceutical company working on treatments for a variety of dermatological conditions. This includes photodynamic therapy and topical antibiotics.
Looking ahead, BFRI plans to report its third-quarter results on November 30th at market close. This is an important event that investors should pay attention to if interested in BFRI stock. It’s also worth noting that there is a sizable amount of bullish sentiment surrounding biotech penny stocks right now. And while this is not nearly the only cause for BFRI stock rising today, it could be a contributing factor. Considering that, does it deserve a spot on your list of penny stocks to watch?
Allied Esports Entertainment Inc. (NASDAQ: AESE)
Allied Esports Entertainment Inc. is a penny stock that’s pushed up by over 9% in the past month and almost 100% in the past year. While performance in the past few weeks is nothing to write home about, we have seen bullish momentum with AESE stock in the last few trading days. If you’re not familiar, Esports is a modern genre of sport that is growing on a large scale at the moment. Newzoo’s 2021 Global Esports & Live Streaming Market Reported stated that global esports revenues are expected to be more than $1 billion this year. That would represent a growth rate of 14.5% year-over-year. In line with this, Allied is an esports company that offers live experiences, content, and interactive services to worldwide audiences.
On November 22nd, Allied joined earnings season like many other penny stocks. The company’s total revenues reached $1.7 million, representing a monumental 182% increase year over year. Much of this had to do with the company’s HyperX Esports Arena Las Vegas receiving increased traffic as loosened restrictions occurred in Vegas. Last year, Allied experienced a net loss of $6.5 million. But this year, the company reported a net income of $74.3 million. These numbers are highly substantial and show major growth for the company.
“During the quarter, total revenues more than doubled from the prior quarter and increased over 182% compared to the third quarter last year. This growth was driven by a sharp recovery of the In-person pillar of our Esports business with the U.S. economy almost fully re-opened, coupled with a steady climb in Las Vegas foot traffic and the return of live entertainment events.”
Allied’s CEO, Libing (Claire) Wu
It’s clear that the fundamentals for AESE stock are there. However, investors should keep a close eye on Covid to see how it could continue to affect AESE stock. Noting this new positive progress, will AESE be on your penny stock watchlist?
ReTo Eco-Solutions Inc. (NASDAQ: RETO)
ReTo Eco-Solutions Inc. is a company that offers a wide range of products and services in the construction industry. Primarily, these products and services are for environmentally-friendly construction materials, environmental protection equipment, manufacturing equipment, and more. The company’s products are used for project consulting, design, and installation to improve ecological environments.
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At the end of October, ReTo reported its financial results for the first half of 2021. Its revenues and equipment sales both fell during the first half of the year and year over year. In better news, the company’s wholly-owned subsidiary REIT Mingsheng Environmental Protection Construction Materials Co. Ltd. entered a comprehensive construction stage of a new project.
“We have increased our investment in ecological restoration, ecological governance technology, and market development, and have launched such projects in a few counties in Shanxi Province. This will enable us to improve the company’s performance in the second half of the year.”
The Chairman and CEO of ReTo, Mr. Hengfang Li
In the last 30 days, RETO stock has pushed up by a respectable 17%, however from October 25th to November 18th, shares exploded by over 240%. This occurred before a solid correction of around 60% in the days following. Noting this, will RETO stock make your watchlist going into December?
Which Penny Stocks Are You Watching Right Now?
With so many penny stocks to choose from in 2021, it can be difficult to tell which are worth it and which aren’t. However, with a commitment to research and understanding exactly how to trade penny stocks, making money with small caps can be much easier than previously imagined. With all of that in mind, which penny stocks are you watching right now?